The August decision by the Bank of England’s Monetary Policy Committee once again saw the base rate held at its historically low level of 0.5%; however, with economists increasingly expecting a rise in the coming months, it may be worth consulting property accountants in order to take pre-emptive action.
Several groups of people could benefit from taking action now, before the rate begins to rise again – from those nearing the end of fixed-rate deals, to those who have already reverted to their lender’s standard variable rate.
In either case, if you can lock into a long-term fixed-rate deal now, it could help you to delay your exposure to any increase in the base rate in the coming months.
According to figures from Ocean Finance, one in ten mortgagors are already behind on their repayments, and one in ten homeowners would sell up if interest rates were to rise.
Nearly half (46%) of those surveyed said a 3% increase in their mortgage interest rate would either potentially or definitely cause them to struggle to service the debt.
Fixed-rate mortgages may only postpone the inevitable, but locking in at a low rate now could provide some breathing space to sort out your finances before being exposed to any rate rises; our property accountants can help you to determine the best course of action for the money and assets you have at your disposal.